Scenario: Exchange Rates the Value of a Euro Goes from US$1.25

question 239

Multiple Choice

Scenario: Exchange Rates The value of a euro goes from US$1.25 to US$1.50. In the United States, exports will _____ and imports will _____.

• A) increase; decrease
• B) increase; increase
• C) decrease; increase
• D) decrease; decrease

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Definitions:

Monthly Payments

Payments made once a month, often as part of a loan or rental agreement.

Borrow

To receive something of value with the promise to return it or its equivalent value at a later date.

Compounded Semi-Annually

A method of calculating interest where the interest is added to the principal twice a year, leading to interest on interest.

Monthly Contributions

Regular payments made into a financial scheme, savings, or investment plan every month.